Great Wall Motor's stock price plunged 5.05% during Monday's intraday trading session, following the release of the company's 2025 financial results that fell short of market expectations.
The automobile manufacturer reported a 22% year-on-year decline in net profit attributable to shareholders to 9.87 billion yuan, with earnings per share of 1.16 yuan missing Visible Alpha estimates of 1.34 yuan. While operating revenue increased 10% to 222.8 billion yuan, this figure also slightly missed analysts' forecast of 223.6 billion yuan.
Further analysis reveals margin compression, with the company's net margin declining to 4.4% from 6.3% a year earlier, raising questions about earnings quality despite a 4.1 billion yuan one-off gain included in the results. The trailing 12-month basic EPS decreased from 1.49 yuan to 1.16 yuan, indicating softening profitability trends that challenge bullish growth narratives for the automaker.
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